The former chief executive of Magellan Health Services Inc., Dr. René Lerer, is receiving a $4.2 million cash award for his performance, according to a company filing March 5 with the U.S. Securities and Exchange Commission.

Magellan Health Services Inc. will have a new chief executive at the start of the year as current CEO René Lerer steps down to become a full-time executive chairman.
The change is part of a transition to take place over several years. Barry M. Smith will...